Apartment prices in Nghe An continue to increase
Currently, apartment prices in Nghe An have increased by about 30% compared to the same period in 2023. This gap not only creates great financial pressure but also makes home ownership increasingly difficult for the majority of workers.
Scarce supply
Over the past two years, apartment prices in Nghe An have been steadily climbing. Buying a home has become a distant goal for most workers, causing great financial pressure.
Ms. Tran Thi Tinh - a young teacher in Vinh city shared: Accumulated and borrowed over many years about over 1 billion VND, intending to buy an apartment, however, due to the scarcity of new apartments for sale, the selling price is continuously pushed up to a high level, about 1.5 billion VND/60 m2 apartment2, beyond financial capacity so the family is having to postpone to rent a house.
According to a survey of a large apartment project on Phan Boi Chau Street, Vinh City with a scale of 25 floors, with over 500 rooms, started construction in October 2022, is currently being completed, and is expected to be put into use by December 2024. Previously, at the time of construction in 2022, the investor sold at a price of 15-16 million VND/m2, most of the customers have booked. Up to now, customers want to buy back the price has skyrocketed to 26 million VND/m2.
Mr. Tran Minh Tam in Nam Giang commune, Nam Dan district, working at an electrical refrigeration facility in Vinh city, shared: For example, an apartment at Vinhomes Quang Trung in March 2024 costs 30 million VND/m2.2(2 years ago the previous owner bought it for 23 million VND/m2)2), now the owner sells it for 35 million VND/m2. This apartment is a high-end apartment building in the city center, so the price is high. Unable to afford it, Mr. Tam's family is looking for apartments away from the city center. However, the price ranges from 23-24 million VND/m2.
Next to it is a resettlement apartment project for households in Quang Trung ward, the price in 2021 is only 14 million VND/m2.2, now increased to 26 million VND/m2Other apartment projects in Le Loi ward, Vinh Tan previously cost 16 million VND/m2.2, now priced from 25-26 million VND/m2…
Promoting the construction of social housing, solving the "thirst" for apartments
The supply of new apartments in Vinh City is increasingly scarce because the province has not approved the policy of building more apartments in the inner city to preserve the architectural landscape and reduce pressure on the inner city. Currently, some new apartment projects in the area are under construction, mainly old apartment projects that were approved by the Provincial People's Committee for investment and construction in previous years.
Mr. Nguyen The Phiet - Head of Housing Management and Real Estate Market, Nghe An Department of Construction said: The scarcity of apartment segments and increasing apartment prices is a common situation across the country. Vinh City is currently implementing the construction of old apartment projects, expected to supply nearly 1,000 apartments in 2024. However, due to high demand, most of the apartment projects under construction have already had customers placing orders.
With the continuous increase in apartment prices in recent times, the opportunity to own a house for low- and middle-income people in urban areas will become increasingly difficult and negatively impact the State's social security policy.
In addition, to improve the selling price of apartments, the first factor is to improve the market supply. In particular, the development of social housing with low prices will help the average selling price of apartments decrease sharply.
On October 9, 2023, Nghe An Provincial People's Committee issued Plan No. 778/KH-UBND to implement the Project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period of 2021 - 2030" according to Decision No. 338/QD-TTg dated April 3, 2023 of the Prime Minister in Nghe An province. The goal of the plan is to develop social housing and worker housing at prices suitable to the affordability of low-income people in urban areas and of workers and laborers in industrial parks in the province.
With this project, Nghe An strives to complete the construction of 28,500 social housing units in the period of 2021 - 2030 in accordance with the assigned targets in the Project "Investing in the construction of at least 1 million social housing units for low-income earners and industrial park workers" approved by the Prime Minister under Decision No. 338/QD-TTg dated April 3, 2023. Of these, there are 9,000 social housing units for low-income earners and 19,500 social housing units for industrial park workers.
The project will be implemented in 2 phases, phase 1 from 2021 - 2025 and phase 2 from 2026 - 2030. To promote the development of social housing and workers' housing in the coming time, Nghe An has implemented many solutions. That is to promote the completion of the legal basis under its authority, strengthen the reform of administrative procedures related to investment in social housing construction to improve the environment and attract investment.
According to Mr. Nguyen The Phiet, Nghe An is currently implementing 3 social housing projects. The first project is the KT Home social housing project for workers and laborers in industrial parks in the Southeast Economic Zone, built in Nghi Xa commune, Nghi Loc district, Nghe An province, invested by Kim Thi Real Estate Joint Stock Company.
KT Home social housing project has a scale of 7 5-storey apartment buildings with 525 apartments with an area of 37 - 69m22/unit and 23 adjacent low-rise houses (townhouses). The project is under construction and is expected to be handed over and put into use from the third quarter of 2024.
In Vinh city, there are also 2 social housing projects including: Housing project for low-income people and officials and employees in Hung Loc commune, Vinh city, invested by Nghe An Petroleum Trading and Investment Joint Stock Company; Social housing project in Hung Dung ward, Vinh city. Both of these projects are under construction, expected to be put into use in 2025, providing 140 more apartments.
